Zephyr Vitality plc : State 36-2R nicely replace

Zephyr Vitality plc

(“Zephyr” or the “Firm”)

State 36-2R nicely replace

Zephyr Vitality plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gasoline firm targeted on accountable useful resource growth and carbon-neutral operations, is happy to supply an replace on drilling operations on the State 36-2R LNW-CC nicely (“the nicely”) on the Firm’s flagship mission within the Paradox Basin, Utah, U.S.

Drilling operations have been accomplished safely and efficiently, with the nicely drilled to a complete depth of 10,290 toes (measured depth).

Zephyr’s operations workforce is now getting ready to set a manufacturing liner throughout the Cane Creek reservoir part (the “reservoir”), after which the Helmerich & Payne Rig 257 will rig down and demobilise from the location. Over the approaching weeks, Zephyr will mobilise gear for completion and manufacturing testing of the naturally fractured reservoir zone that was efficiently intersected throughout drilling operations.

Preliminary outcomes point out that the nicely, just like the State 36-2 LNW-CC nicely (the “authentic nicely”), penetrated a folded and naturally fractured part of the reservoir. It intersected the highest of the reservoir roughly 15 toes from the unique nicely bore and its pure fracture community. The nicely encountered drilling mud gasoline exhibits of the same magnitude to the unique nicely and pore strain evaluation counsel formation pressures estimated at roughly 9,300 kilos per sq. inch (which is broadly in line with beforehand drilled offset wells).

The nicely additional confirms the presence of hydrocarbons inside a big structural compartment, inside Zephyr’s acreage and 3D seismic protection.  Through the upcoming manufacturing check, the nicely will probably be flowed and manufacturing examined to find out reservoir strain, fluid composition, nicely circulation price, bulk reservoir permeability and ship an early estimate of the general potential recoverable sources.

 Colin Harrington, Zephyr’s Chief Government, mentioned:

“I’m delighted to have concluded drilling operations safely and consistent with our plans. We’ve intersected the reservoir remarkably near the unique nicely and early indications indicate affirmation of hydrocarbons – and that we’ve seemingly been profitable in hitting our pure fracture goal with precision.

“Our subsequent step is to start the nicely manufacturing check within the coming weeks, topic to service availability.  We sit up for protecting the market apprised as testing operations start and a extra fulsome analysis of the nicely consequence turns into out there.”

Certified Particular person

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical Adviser to the Board of Zephyr Vitality plc, who meets the standards of a certified individual beneath the AIM Be aware for Mining and Oil & Gasoline Firms – June 2009, has reviewed and permitted the technical info contained inside this announcement.

Notes to Editors

Zephyr Vitality plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gasoline firm targeted on accountable useful resource growth from carbon-neutral operations within the Rocky Mountain area of the US.  The Firm’s mission is rooted in two core values: to be accountable stewards of its buyers’ capital, and to be accountable stewards of the setting wherein it really works.

Zephyr’s flagship asset is an operated 46,000-acre leaseholding situated within the Paradox Basin, Utah, 25,000 acres of which has been assessed to carry, web to Zephyr, 2P reserves of two.6 million barrels of oil equal (“mmboe”), 2C sources of 34 mmboe and 2U sources 270 mmboe.

Along with its operated belongings, the Firm owns working pursuits in a broad portfolio of non-operated producing wells throughout the Williston Basin in North Dakota and Montana. Money circulation from the Williston manufacturing will probably be used to fund the deliberate Paradox Basin growth. As well as, the Board will contemplate additional opportunistic value-accretive acquisitions.

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